POLYCAB - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🔌 Fundamental Stock Analysis: Polycab India Ltd (POLYCAB) Rating: 4.5

🧾 Financial Strength & Return Profile

ROE: 21.4% and ROCE: 29.7% — outstanding return ratios signal top-tier capital efficiency and operational prowess.

EPS of ₹147 and PAT Qtr: ₹592 Cr — strong earnings capability despite sequential decline from ₹727 Cr.

Debt-to-Equity: 0.02 — near-zero leverage, ensuring financial durability and balance sheet strength.

Dividend Yield: 0.50% — modest, consistent with growth-focused firms reinvesting profits.

💰 Valuation Indicators & Technical Overview

Metric Value Interpretation

P/E Ratio 47.3 Premium valuation vs. industry PE of 30.3 — market pricing in leadership quality

P/B Ratio ~10.66 Reflects strong investor confidence and brand premium

PEG Ratio 1.61 Slightly elevated, but acceptable for growth momentum

RSI 62.6 Approaching overbought territory — cautious entry advised

MACD 142 Strong bullish momentum — trend remains up

Price vs DMA ₹6,962 vs DMA50/200: ₹6,471 / ₹6,153 Solid positioning above key averages — trend support intact

Volume: Slightly above 1-week average — indicates sustained interest and active trading.

FII/DII Holding: Both show positive changes — strong institutional confidence.

🧠 Business Model & Competitive Moat

Sector: Electrical goods — cables, wires, FMEG (Fans, LED lighting, switches, etc.)

Strategic Advantage

Extensive distribution network across India

High brand recall in industrial and consumer segments

Scaling FMEG segment provides diversification and margin expansion potential

Consistent innovation and capital discipline driving growth

📌 Investment Strategy

Entry Zone: ₹6,500–₹6,700 — technical supports and valuation comfort improve in this band, especially if RSI cools toward 55.

Long-Term Outlook

Top-quality growth compounder — ideal for long-term core holdings.

Monitor margin trends in FMEG segment, rural expansion, and export strategies.

Valuation may remain elevated given business momentum and industry leadership.

Want me to map POLYCAB’s growth and margins against Havells, KEI Industries, or Finolex to sharpen perspective on sector opportunities? We can chart the differences or stack them head-to-head across fundamentals. Just say when.

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